A bill that would allow companies to get capital for start-up or expansion by “crowdfunding” has passed both houses of the Michigan Legislature and is awaiting the governor’s signature.

The bill was introduced by Rep. Nancy Jenkins, R-Clayton. The bill initially passed the House of Representatives unanimously and a slightly altered version passed the Senate unanimously, Jenkins said.

A reconciled version of the bill passed the House Dec. 12 with one “nay” vote, by Rep. Rose Mary Robinson, D-Detroit, Jenkins said.

The bill is awaiting Gov. Rick Snyder’s signature. Snyder is expected to sign the bill before the end of the year, Jenkins said.

Jenkins has announced a Jan. 10 seminar called “Crowd Connections” at the Christian Family Centre in Adrian for people who want to learn more about crowdfunding. Attendees will have the opportunity to learn what the bill does and how they can use equity crowdfunding for their small businesses, and they will have the opportunity to hear from and connect with Michigan investment, small business and banking experts, according to a news release from Jenkins.

Lunch will be provided, the news release said.

Crowdfunding is generally described as many people making small investments in a company, usually through an Internet site.

Jenkins’ legislation allows intrastate investing only, meaning companies seeking funds would have to be organized or incorporated under Michigan law and investors would have to be Michigan residents.

The stock offerings and investments would not be regulated by the U.S. Securities and Exchange Commission, which has jurisdiction over interstate stock offerings.

Under the law, there is a $1 million fundraising cap within a 12-month period if the issuer of shares does not provide an audit, and a $2 million cap if the issuer does provide an audit.

There is a $10,000 limit on investment by nonaccredited investors, but no limit for accredited investors.

Accredited investors must have a certain high level of net worth or annual income.

The bill would allow direct solicitation of investment or the use of broker-dealers or Internet portals.

“I’m very happy for the fact that it went through so quickly,” Jenkins said about the bill, which she introduced in September.

She hopes the bill will help spur economic activity in Michigan, Jenkins said.